Question: Question Five (20 Marks a. State two components of the money stock. (2 marks) b. State and explain any two instruments of monetary control. (4

Question Five (20 Marks a. State two components of the money

Question Five (20 Marks a. State two components of the money stock. (2 marks) b. State and explain any two instruments of monetary control. (4 marks) c. Distinguish between an inside lag and an outside lag. (2 marks) d. State and explain any two functions of financial markets. (4 marks) e. State two price indexes that can be used to measure inflation. (2 marks) f. State and explain any two costs of expected inflation. (4 marks) g. State any two costs of unexpected inflation. (2 marks)

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